Wie hat sich die intragenerationale Umverteilung in der staatlichen Säule des Rentensystems verändert? / Has Intragenerational Redistribution Become Less Important in Pension Systems’ Public Pillar?

2011 ◽  
Vol 231 (2) ◽  
Author(s):  
Tim Krieger ◽  
Stefan Traub
Keyword(s):  
Pension System ◽  
Defined Contribution ◽  
The Public ◽  
Pension Systems ◽  
Catching Up ◽  
Sigma Convergence ◽  
Notional Defined Contribution ◽  
International Convergence ◽  
High Degree ◽  
Beta Convergence

SummaryWe empirically investigate whether the significance of intragenerational redistribution in the public pillar of pension systems in 20 OECD countries has changed systematically since the 1980s and whether international convergence of the degree of intragenerational redistribution can be observed. Intragenerational redistribution is measured by the Bismarckian factor which provides information about the relative importance of the earnings-benefit link in the pension formula (as compared to a flat-benefit Beveridgean pension system). Based on micro data from the Luxembourg Income Study, we find both, a trend towards (more Bismarckian) pension systems which obey the principle of participation equivalence and an international convergence of pension systems. The reduced variation of pension systems (sigma convergence) is driven by countries with a high degree of intragenerational redistribution catching up with more traditional Bismarckian countries (beta convergence). Both, fundamental pension reforms as Sweden’s and Italy’s move to „notional defined contribution‘‘ systems, and parametric reforms ranging from the removal of group-specific benefits to alternative calculations of contribution history, such as changing from „best years‘‘ to the entire worklife, underlie this development.

scholarly journals Notional Defined Contribution (NDC) Schemes: a pension system alternative

2021 ◽  
Vol 16 (2) ◽  
pp. 1-18
Author(s):  
Gustavo da Costa Morais ◽  
Carolina Cardoso Novo ◽  
Mirian Picinini Méxas
Keyword(s):  
Decision Making ◽  
Literature Review ◽  
Pension System ◽  
Social Impacts ◽  
Defined Contribution ◽  
Public Officials ◽  
Pension Systems ◽  
Notional Defined Contribution

This article aims to discuss the main concepts related to notional defined contribution (NDC) schemes and to analyze the experiences of Sweden, Italy, Latvia, Poland and Norway. The methodology is based on a literature review. The main result was that the extent of NDC as a pension system alternative depends on the degree of closeness to the generic scheme. It is recommended to analyze NDC as an alternative for pension system reforms considering its capacity to control structural deficits. As a limitation, it was not analyzed some possible social impacts of NDC introduction. This article is original because encompasses theoretical and practical aspects of NDC schemes. It is expected that this research can contribute to assist public officials in decision-making about reforms in pension systems.

scholarly journals The transition to NDC in Italy: assessing distributive and financial effects

2021 ◽  
pp. 1-16
Author(s):  
Carlo Mazzaferro
Keyword(s):  
Net Present Value ◽  
Pension System ◽  
Pension Scheme ◽  
Defined Benefit ◽  
Defined Contribution ◽  
Ratio Distribution ◽  
Actuarial Fairness ◽  
Notional Defined Contribution ◽  
High Level ◽  
Pension Benefits

Abstract Moving from a Defined Benefit (DB) to a Notional Defined Contribution (NDC) pension formula creates significant re-distributive effects. We estimate the amount and the intensity of these effects in the case of the Italian transition to NDC, which began in 1995. Based on administrative data of the main Italian pension scheme (FPLD), we study the evolution of yearly inequality within old-age pension benefits. Furthermore, we study the adequacy and the actuarial fairness of the pension system, by estimating the replacement rates and the Net Present Value Ratio distribution for workers who retired in the period 1996–2019. Our results show that the very generous interpretation of acquired rights determined by the 1995 reform has contributed to maintaining a high level of adequacy and a significant level of intergenerational imbalance. The financial costs of this imbalance are estimated and its extent is significant.

scholarly journals Public-Private Partnerships in statutory pension systems: A new interaction between the public and the private sectors

2011 ◽  
Vol 6 (2) ◽  
pp. 103
Author(s):  
Angelos Stergiou
Keyword(s):  
Pension System ◽  
Good Practice ◽  
Swedish Version ◽  
The Public ◽  
Pension Systems ◽  
Point Of Interest ◽  
Swedish Model ◽  
Starting Point ◽  
Wide Range ◽  
The Individual

<p>The article argues that not every publicprivate partnership on the field of pensions is considered to be positive per se; the decisive criterion is the institutional framework within which such a partnership is being realized. The factor that causes them to differ is the  adequacy of the rules materializing a partnership as such. This explains why our main point of interest focuses upon the respective regulative aspects and the necessary/ consequent statutory guarantees. Taking this as our starting point, the Swedish model constitutes an example of good practice. The Swedish version of the public-private partnership in the statutory pension system appears as the best solution for specific sorts of systems, such as the individual accounts. In being transparent, guaranteeing prudent investments and in offering the minimum possible cost for employees, it embodies a wide range of advantages.</p>

scholarly journals Controlling a demographic wave in defined contribution pension systems

2018 ◽  
Vol 27 (2) ◽  
pp. 1-18
Author(s):  
Massimo Angrisani ◽  
Cinzia di Palo
Keyword(s):  
Baby Boomers ◽  
General Principle ◽  
Pension System ◽  
Developed Countries ◽  
Intergenerational Equity ◽  
Defined Contribution ◽  
Theoretical Profile ◽  
Pension Systems ◽  
Pension Schemes ◽  
Operating Method

Abstract In several developed countries, the baby boomers will come to retire in the next decades. This problem will threaten the sustainability and the intergenerational equity of mandatory pay-as-you-go pension systems because they will have to drain the “demographic wave” of retirees with a relatively small number of contributors. In this paper, we give the operating method developed on the basis of a general principle, which a defined contribution pension system, in a state of stable sustainability, should adopt to control these issues in the presence of a demographic wave. In the theoretical profile, our approach breaks and overcomes the classical juxtaposition between funded and pay-as-you-go pension schemes, carrying out the integration of the two financial methods.

LIFE CARE ANNUITIES (LCA) EMBEDDED IN A NOTIONAL DEFINED CONTRIBUTION (NDC) FRAMEWORK

2016 ◽  
Vol 46 (2) ◽  
pp. 331-363 ◽  
Author(s):  
Javier Pla-Porcel ◽  
Manuel Ventura-Marco ◽  
Carlos Vidal-Meliá
Keyword(s):  
Pension System ◽  
Incidence Rates ◽  
Fixed Cost ◽  
Defined Contribution ◽  
Life Care ◽  
Term Care ◽  
Retirement Pension ◽  
Proposed Model ◽  
Notional Defined Contribution

AbstractThis paper examines the possibility of embedding public long-term care (LTC) insurance within the retirement pension system, i.e. introducing life care annuities into a notional defined contribution framework. To do this, we develop a multistate overlapping generations model that includes the so-called survivor dividend and give special attention to the assumptions made about mortality rates for dependent persons and LTC incidence rates, which largely determine the contribution rate assigned to LTC. The proposed model could be of interest to policymakers because it could be implemented without too much difficulty, it would universalize LTC coverage with a “fixed” cost, and it would discourage politicians from making promises about future LTC benefits without the necessary funding support.

scholarly journals Reform of Healthcare and Pension Systems in Chile (Conclusions for Poland)

2011 ◽  
Vol 14 (2) ◽  
pp. 41-60
Author(s):  
Ryszar Piasecki
Keyword(s):  
Health Reform ◽  
Pension System ◽  
Pension Reform ◽  
Public Hospitals ◽  
Medical Doctors ◽  
The Public ◽  
Pension Systems ◽  
Public Pension System ◽  
The World ◽  
State Subsidies

Health reform in Chile attemps to improve healthcare of the citizens. The authorities of the country managed to combine both the private (ISAPRE) and public systems FONASA). The biggest success was the creation of AUGE (state subsidies for 66 diseases). The unsolved problems are as follows: long waiting lists and shortages of beds in public hospitals, shortage of medical doctors and specialists. As far as the pension reform is concerned Chile was the first state in the world which in 1981 totally privatized the public pension system. Unfortunately, the fruit of changes in Chile is less optimistic (extremely low pensions) than it was initially assumed. According to specialists the only chance for a correct work of the pension system is introduction of the system which would combine two forms, i.e. a state intergenerational agreement and capital system.

Insurance Against Longevity Risk in a Pension System the Case Study of Poland

2015 ◽  
Vol 10 (4) ◽  
pp. 297-309
Author(s):  
Marek Szczepański
Keyword(s):  
Structural Changes ◽  
Pension System ◽  
Research Work ◽  
Social Consequences ◽  
Longevity Risk ◽  
Social Security Systems ◽  
The Public ◽  
Pension Systems ◽  
Retirement System ◽  
Pension Schemes

Life expectancy has been rapidly increasing and remains uncertain in all OECD countries, including Poland. One of the many economic and social consequences of this process is the increase of the longevity risk in social security systems. This article focuses on the issues of managing longevity risk in the pension system in Poland, in particular - the construction of public and supplementary pension systems and its ability to adapt to the challenges associated with longevity risk. Particular attention has been paid to the analysis of public structures and supplementary pension schemes in the phase of payment of benefits (decumulation). The research work, of which the results are presented in the article, is based on literature studies, comparative analysis, statistical analysis; as well as descriptive and explanatory methods. Also, a model of the two stages of pension risk created by T. Szumlicz has been used. The author argues that both the public pension systems as well as the supplementary pension schemes in Poland do not secure adequate protection against the risk of longevity. While in the public retirement system, the aggregate longevity risk exists, and the participants of additional pension systems are exposed to individual longevity risk. The limitation of these risks requires significant structural changes both in the public and in the additional pension schemes in Poland. 

The Logical Sustainability Theory for pension systems: the discrete-time model in a stochastic framework under variable mortality

2019 ◽  
Vol 0 (0) ◽  
Author(s):  
Massimo Angrisani ◽  
Cinzia Di Palo
Keyword(s):  
Evolution Equations ◽  
Pension System ◽  
Defined Contribution ◽  
State Variables ◽  
Time Model ◽  
Pension Systems ◽  
Stochastic Framework ◽  
Sustainability Theory ◽  
System Sustainability ◽  
Necessary And Sufficient

AbstractThe aim of this work is to provide the logical sustainability model for defined contribution pension systems (see [1], [2]) in the discrete framework under stochastic financial rate of the pension system fund and stochastic productivity of the active participants. In addition, the model is developed in the assumption of variable mortality tables.Under these assumptions, the evolution equations of the fundamental state variables, the pension liability and the fund, are provided. In this very general discrete framework, the necessary and sufficient condition of the pension system sustainability, and all the other basic results of the logical sustainability theory, are proved.In addition, in this work new results on the efficiency of the rule for the stabilization over time of the level of the unfunded pension liability with respect to wages, level that is defined as β indicator, are also proved.

scholarly journals Thinking in Vertical: A Practical Application of the Two-Stage Pension System in Spain

2020 ◽  
Vol 12 (23) ◽  
pp. 9928
Author(s):  
Pierre Devolder ◽  
Inmaculada Domínguez-Fabián
Keyword(s):  
Pension System ◽  
Current System ◽  
Point Of View ◽  
Two Stage ◽  
The Public ◽  
Pension Systems ◽  
Private And Public ◽  
The One ◽  
Sustainability Problems ◽  
The Relationship

Public pay-as-you-go pension systems are affected by sustainability problems due to the increasing longevity of the population. These problems come to light when there is unsustainable growth in pension expenditure in relation to GDP. The usual arrangement is for public systems to be complemented by private systems that provide a lifetime annuity paid alongside the public pension. This approach, which is horizontal in its way of thinking, is the one that all countries apply; in it, we can expect to find lifetime annuities, which are expensive because they have to take increasing longevity into account, as well as sustainability problems in the public accounts. Therefore, in this paper, we put forward a system that maintains the complementarity between private and public, but considers it from a vertical point of view. By this, we mean that over a certain period of time, the private system would provide the pension in the form of a temporary income, without the need to consider such a high longevity risk, and then in the following period, the public system would take over. We apply the model to Spain, one of the countries whose pension systems are most affected by problems of sustainability, and observe a decrease in the relationship between pension expenditure and GDP using this two-stage model as opposed to the current system, for the period 2025–2068. This decrease can be achieved without decrease of benefits, change in the retirement age or increase of the contribution level.

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